Approval

Northern Natural Gas Co. on behalf of its business, Southern Natural Gas and Florida Gas Transmission, has asked the Federal Energy Regulatory Commission for approval to abandon in place the Matagorda Offshore Pipeline System (MOPS), which includes offshore facilities and onshore facilities in Texas because they are “grossly underutilized.” During April, the MOPS system transported less than 6,500 Dth/d, a fraction of the system’s original design capacity of 480,000 Dth/d, Northern Natural said. In August 2012, FERC approved Northern’s request to abandon the MOPS Phase III facilities; Northern now wants authority to abandon the first two phases, which consist of about 55 miles of 24-inch diameter pipeline that begin at Matagorda Block 686 and continue to onshore facilities at Tivoli, TX. In addition to dwindling pipeline volumes, evidence demonstrates that production declines are permanent, Northern said. FERC denied Northern’s original plea to abandon the Phase I and II facilities in an April 2011 order. At that time, there were 17 production points (out of the original 30), and now there are only four production points tied into the MOPS system, Northern said.

Bluegrass Pipeline, which if sanctioned would carry surging mixed natural gas liquids (NGL) from the Marcellus and Utica shales to Northeast markets and Gulf Coast petrochemical complexes, faces some hurdles before it would be sanctioned, the project partners said Tuesday.

Nevada’s state Senate on Wednesday gave unanimous approval to a utility-backed proposal (SB 123) to retire coal-fired generation in the state and to usher in more natural gas-fired and renewable generation in the years ahead. SB 123 now goes to the lower house Assembly for action.

The lower House in the Colorado state legislature on Monday gave its approval to a proposal (HB 1267) to greatly increase the fines against oil and natural gas operators responsible for damaging the environment.

Environmental blockades in Canada against pipeline projects are being dismantled by a new regulatory regime, clearing a path to approval for TransCanada Corp.’s proposed oil conversion of its natural gas Mainline (see NGI, April 8a).

Environmental blockades in Canada against pipeline projects are being dismantled by a new regulatory regime, clearing a path to approval for TransCanada Corp.’s proposed oil conversion of its natural gas Mainline (see Daily GPI, April 3).

Kinder Morgan Energy Partners LP (KMP) is holding a binding open season through May for capacity on the proposed 1,025-mile Freedom Pipeline LLC for transporting Permian Basin crude from Texas to refineries in both Southern and Northern California.

Spokane, WA-based Avista Utilities on Wednesday gained approval Wednesday from Idaho regulators to raise its retail natural gas utility rates 5.2% this year with the bulk of the hike effective Monday. Retail electric rates for the combination utility will stay unchanged until Oct. 1 when a 1.9% power utility retail rate increase will start, according to the Idaho Public Utilities Commission (PUC). The rate changes are part of a settlement the PUC approved, dividing the gas hike into two parts: 4.9% effective Monday and 0.3% held until Oct. 1. Avista originally had proposed a 7.2% gas rate increase overall, and a 4.6% electric rate hike for Monday. The settlement precludes a separate base rate settlement from becoming effective until Jan. 1, 2015, the PUC said.

In rebuttal comments filed at the Department of Energy (DOE), producers have called on the department to proceed with review and approval of liquefied natural gas (LNG) export applications expeditiously, saying the nation has more than enough natural gas to meet domestic demand and supply exports.While producers favor exports, large gas users and environmentalists are mostly opposed to them.